In March 2018, the Supreme Court (sitting as a panel of Lord Mance, Lord Sumption, Lord Carnwath, Lord Hughes, Lord Briggs) will hear this appeal relating to the interpretation and interaction between the clauses of the standard form Institute War and Strikes Clauses 1/10/83. The Supreme Court will consider whether exclusion clause 4.1.5, for losses arising from detention for breach of customs regulations, has the effect of excluding cover where the breach of customs regulations occurs is produced due to an insured risk. Say no to plagiarism. Get a tailor-made essay titled “Why Violent Video Games Should Not Be Banned”?Get the original essay The appellants owned a ship named “B Atlantic”. She took out war risks insurance with the respondents on the Institute's war and strike clauses 10/01/83 with additional risks. On August 13, 2007, in a Venezuelan port, divers inspected the ship and discovered 132 kg of cocaine attached to its hull by an unknown person. This contravened Venezuelan law and, as a result, local authorities detained the ship and fined the captain and second officer. The owners eventually abandoned ship and claimed an attributable loss under the war risks insurance policy. The policy provided cover against loss or damage to the vessel caused by anyone acting maliciously. It also excluded any loss, damage, liability or expense arising from detention or confiscation due to a violation of any customs or trade regulations (the “Exclusion”). The insurers recognized that the owners and crew were not complicit in the smuggling and the litigation continued. on this basis. The insurer also accepted that the vessel constituted a constructive loss and refused cover on the basis that the detention was due to a breach of customs regulations. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get Custom Essay The owners argued that, on a proper construction of the policy, clause 4.1.4 did not exclude losses arising from an insured risk, namely the malicious acts of a third party under the clause 1.5.